Big Short: Inside the Doomsday Machine, The

Michael Lewis

The real story of the crash began in bizarre feeder markets where the sun doesn't shine and the SEC doesn't dare, or bother, to tread: the bond and real estate derivative markets where geeks invent impenetrable securities to profit from the misery of lower--and middle--class Americans who can't pay their debts. The smart people who understood what was or might be happening were paralyzed by hope and fear; in any case, they weren't talking. Michael Lewis creates a fresh, character-driven narrative brimming with indignation and dark humor, a fitting sequel to his #1 bestseller Liar's Poker. Out of a handful of unlikely--really unlikely--heroes, Lewis fashions a story as compelling and unusual as any of his earlier bestsellers, proving yet again that he is the finest and funniest chronicler of our time. The #1 New York Times bestseller: "It is the work of our greatest financial journalist, at the top of his game. And it's essential reading."—Graydon Carter, Vanity Fair

Reviews

Concise explanation of the subprime mortgage crash woven into fascinating stories of the people on each side of it. A couple plot lines are not fully pursued though, especially the one I found most interesting, that of Mike Burry.

There a number of lessons that can be gleaned from this book. The first, and possibly the most important, is that markets are not anywhere near efficient. In fact, they are as imperfect as humans are self-deceiving. The second is that Wall Street will do virtually anything for money, including create, sell and invest in instruments that it does not understand. Finally, it's clear that contrarians and whistle-blowers, regardless of how correct they might be, will always be pariahs in the investment community. Betting against greed might be profitable at times, but it's never going to make anyone the life of the party.